• inhospitable weather
• the north is a long way from southern Canada so proximity to industry limits economic development
• Only the Western Arctic and Yukon have highway systems, which the Central and Eastern Arctic are air-only travel and freight except for summer barge deliveries when the ice makes sea navigation possible. There are no links to the national rail system.
• the lack of private industry, the number of jobs are relatively few with government and natural resources (mining primarily) comprising the major part of the workforce.
• Canada is not about to create factory cities in the North like Russia or China. everything costs more in the north so the cost of living is ridiculous. you have to earn a lot to live well.